at it, kelly you're looking at it as if they have a plane sitting there and you're saying i want to fly. the expectation of the airlines is they will have the staffing and the pilots who have gone through training to do those flights. does it always work out that way? no, it doesn't there's no slack in the system and if there's a delay, a cancellation and a crew that cannot make a flight, there's not an available and ready pool of people to step up and handle that flight and that's a big issue for the airlines right now. >> they're at the white house with the way things are going. that does it for the exchange, everybody. "power lunch" begins right now ♪ ♪ good afternoon, everyone, and welcome. we have a developing story out of washington this afternoon president biden to officially propose a three-month gas tax holiday within the next hour or so record gas prices, of course, have contributed to the highest

inflation rate in 40 years one of the biggest challenges facing the administration. another proposal faces an uphill battle on capitol hill critics say it will backfire and we'll dive into that debate, but first to kelly and a check on where the markets stand at this hour >> tyler, thank you. >> energy absolutely plays into the story. we're seeing them largely playing in tandem, at least this morning both are in the red, energy and stocks. this afternoon a little bit different story. stocks in positive territory even after hawkish comments of fed chair powell if they have to to fight inflation the dow's up 28 and the nasdaq up 69. ahead of the president's speech, oil prices are still under pressure and crude back to around 107 and we were down around 105 earlier in part because it is the first day of the monthly futures contract gasoline which had been in the red. gasoline futures now higher on

the day and that doesn't point to an effective solution to high prices and still, underscoring a tight markets that might see more demand if consumers get a little bit of a break. energy is the worst performing sector down 3% names like marathon to apa to conoco philips all under pressure tyler? >> the problem is supply, folks, and if you support the gas tax and you do nothing to help supply, you help demand, but do nothing to help supply natural average for gas sits just under $5 a gallon remember it hit that price earlier this month the $5 a gallon. his popularity ratings are going down with every penny gas prices go up. one month ago just 4.59. in just the past month you have a 40-cent increase in the gas price and a year ago it was

$3.07, doesn't that look nice by today's lens suspending the federal gas tax was last proposed in 2008. this never happened and critics of the idea say it won't help and the proposal comes one day before the ceos of major oil and gas companies are set to meet. the president set to speak over the next hour about the rising prices and what he has in mind to do for it eamon javers has more on this story. hi, eamon. >> we are expecting the president to speak momentarily so keep your eyes on the podium over at the white house where we expect the president to step up any minutes now. we are told it will extend through september. here we see the president. i'll step aside. >> i'm announcing the framedown of gas prices. first, today i'm calling on congress to suspend the federal gas tax for the next 90 days through the busy summer season,

busy travel season here's what that means, every time you go to the gas station and fill your tank, the government charges an 18 cents per gallon of gas that you purchase and a 24-cent tax per gallon of diesel you purchase. it's a tax that's been around for 90 years it's important because we use it for the highway trust fund to keep our highways going, but what i'm proposing is suspending the federal gas tax without affecting the highway trust fund and here's how we do that. with the tax revenues up this year and our deficit down over $1.6 trillion this year alone, we'll still be able to fix our highways and bring down prices of gas we can do both at the same time. by sus pendzing thesuspending te 18 cent federal gas tax, we can bring down the price of gas and give families a little bit of

relief i call on the companies to pass this along every penny of this 18-sent reducticent reduction t consumers. this is no time for profiteering and i hope my call for action can help move those proposals forward, as well, but we can also cut gas prices more in another way. that's why the second action i'm taking is calling on states to suspend the state gas tax, as well or find other ways to deliver some relief. state gas taxes average 30 cents per gallon already, some states have acted. in connecticut and new york the governors have temporarily suspended their gas tax, as well in illinois and colorado, governors delayed theirs to give their families more breathing room, as well. in in minnesota governor walsh proposes using state budget

surpluses to give households a rebate that will help them to pay for gas at the pump or other essential needs. i'm calling out local gov governments to take actions like these. there are four or five state budgets that have been hurt in the pandemic and states are in a strong position to be able to afford to take some of these actions. now i fully understand that the gas tax holiday alone is not going to fix the problem, but it will provide families some immediate releefrief and breath room as we continue to work on bringing down houses for the long haul. third, i'm calling on the industry to refine more oil into gasoline, and to bring down gas prices let me explain i know my republican friends claim we're not producing enough oil and i'm limiting oil production quite frankly, that's nonsense here's the truth, just this

month america produced 12 million barrels of oil per day that's the highest -- that's higher than average under my predecessor and we're on track to set a new record for production next year plus, i've added to that supply of oil by releasing a record $1 million of barrel per say. in pack, i just the word for the global oil reserves. independent total, that's to boost global supply and republicans falsely claim i'm blocking production on federal lands, but again, that's nonsense the united states have more approved for production than they could possibly use. that's a fact. my administration also directed the sale of gasoline using

homegrown biofuels, ethanol, e-15 this summer which will boost gasoline supplies and lower the price of thousands of gas stations across america, and i welcome the recent announcement from what's known as the opec plus a group of two-dozen oil-producing nations to increase global oil supply the bottom line is we are setting records in terms of american energy production we are supplementing that supply with the release from our oil reserves so the issue isn't oil production alone and the refining of that oil >> during the pandemic, some oil and gas companies shut down refining facilities. last week i sent a letter to the ceos of the largest oil refining companies asking them to work with my administration to bring refineries back online to get

more gas to the pump at lower prices the secretary of my -- and we'll be meeting -- maybe they'll come to the table with very real ideas and i'm prepared to act quickly and decisively to to sense the immediate challenge in front of us and the american people finally, when the price does come down, we need the gas stations for what they charge at the pump to come down, as well for example, in the last two weeks the price of oil has fallen by more than $10 a barrel normally this would reduce the cost at the pump about 25 cents a gallon yet so fargas stations have only reduced prices by a few cents a gallon some haven't reduced prices at all. i've heard plenty of

explanations of companies and economists about why it normally takes time for these price reductions to reach the consumer i might note that when the price of oil to go up, it doesn't take much time for the price at the pump to go up. let's be honest is simple. to the companies running gas stations and sets be up war. global peril these are not normal times bring down the price you are charging at the pump to reflect the price you are paying for the product. do it now. do it today. your customers, the american people, they need relief now so let me summarize, today i'm calling for a federal gas tax holiday. state gas tax holiday for the equivalent relief to customers oil companies use their profits

to increase refiening capacity rather than buy back their own stock. gas stations will pass along the decree -- not the decree, but decrease lower prices at the pump together, these can help drop the price at the pump by up to $1 or more it doesn't reduce all the pain, but it would be a big help i'm doing my part. i want the congress, states and the industry to do their part, as well and let's remember how we got here. putin invaded ukraine. putin invaded ukraine with 100,000 forces just rook at the packs,ness the start of ukraine, gas price pes have riseny and it wasn't just

putin's invasion of ukraine and it would allow put to inget away with something we haven't seen since world war ii i said at the time siding with ukraine during the most serious aggression since world war ii, dfr d defending freedom and defending democracy would not go without cost for the american people and the rest of the free world we would have to pay a price, as well in the cost of military equipment, economic assistance, humanitarian relief and sanctioned russian banking industries russia is also one of the largest oil producers in the world. we cut off russian oil under the united states and our partners in europe did the same knowing that we would see higher gas prices we could have turned a blind eye and the price of gas wouldn't have spiked the way it has i believe that would have been

wrong. i believed then, and believe now the free world had no choice america could not stand by and the west could not have stood by although some suggested it at the time and just watch putin's tanks roll into ukrae a sovereign country. if we did stand by, putin wouldn't have stopped. putin would have kept going and would have faced an even steeper price. it wasn't just me. the american people under stood. the did what they always done, defend freedom around the world. they chose toity almost unanimous reports, republicans and democrats, for supporting ukraine knowing full well the cost. so for all of those republicans in congress criticizing me today for high gas prices in america,

are you now saying we were wrong to support ukraine are you saying we were wrong to stand up to putin? are you saying that we would rather have lower gas prices in america than putin a iron fist in europe? i don't believe that look, i get the easy politics of the attack i get that, but the simple truth is gas prices are up almost $2 a gallon because vladimir putin's ruthless attack on ukraine and we wouldn't let him get away with it. we're doing everything we can to reduce this pain at the pump now. and if those experiences have shown us anything is that we need to grow and harness more energy here at home. let's lower the price of electric vehicles so we never have to pay at the pump in the first place.

they want to increase by 2030 and 100% by 2035 we're building secure supply chains to build these electric vehicles in america and we're investing almost $100 billion in public transit and rail. all of the studies show that it will take millions of cars off the road and significantly reduce pollution if there's a serious transportation system available. let's keep it accelerating our department of homegrown resources. sources of energy like solar, wind, carbon capture stories and keep developing a battery technologies so we can store that power we need when the sun doesn't shine or the wind doesn't blow folks, let's make sure there's a menacing dictator half way around the world we can deal with the media crisis of high gas prices and still seize the clean energy

future we're americans. we can do both we are the most qualified people in the world let me close with this even as we lead the world in defending democracy standing up to a brutal autocrat, there are actions we can take to help american families now. we've taken them we are taking them federal gas tax holiday, state gas tax holiday, bringing back refineries and bringing them back online. we just had to keep going. i promise you i'm doing everything possible, everything possible to bring the price of energy down, gas prices down, and i want to make sure we all work on this together. may god bless you all and may god protect our troops thank you very much. >> that was president biden officially proposing his break on federal gas taxes for the next three months as he urges gasoline stations to drop the

price as quickly as possible let's get to eamon javers to wrap the key headlines and the markets have stocks at fresh session highs and the dow is up 200 points >> the president laying out his proposal and what he's going to do about the problem of high gas prices and also who he glblames for the high gas prices and vladimir putin the president saying sure, republicans want to blame me it's not me, it's vladimir putin and his invasions of ukraine and he returned to the theme time and time again this is as much about proposing a solution as it is solving a political problem for the president of the united states who is getting an increasing amount of blowback on the high gas prices, and the question is whether this idea though is whether they'll go anywhere up on capitol hill and we saw an announcement from the democratic chairman of the house transportation committee today pouring cold water on the idea

that president biden just laid out, the democratic chairman saying although well intentioned it would blow a $10 billion hole in the highway trust fund. some skepticism and not clear where the republican votes will come from from this proposal, as well the president calling on congress to do something and congress in the end may decide not to do. so political difficulty there in selling a political solution if you can't get congress to pass it so this is a white house that has decided clearly they need to take action and need to be seen as taking action, but that will be difficult to execute, kelly. >> thank you very much eamon javers reporting from washington and we'll be following, of course, this story throughout the afternoon and right now with kevin book, managing director at clearview energy partners and dan pickering, chief investment officer at pickering managing partners kevin, let me begin by asking you, the president said several

times there that one of the keys to increasing supply would be to increase refining capacity as i understand it, refineries in the united states are running very close to full capacity. that's number one. the president, correct me. i'm wrong, we need to bring back online every refinery offline. how many are there and how quickly could that be done >> tyler, to the first point, you're absolutely right. the major refining centers and the gulf of mexico running at 95% capacity utilization higher than comparable weeks in previous years also the east coast, 98% and that is flat out, so if the president is calling on the major refineries to run more, there isn't much more to run, but as you point out, if he's calling for refineries to come back there's only so much you can do there, too. the philadelphia energy solutions, basically caught fire

and has been shut down so we're talking about probably in the universe of one or two. that is something that could take months. it is something that is sooner than building a new refinery and not necessarily an immediate turnaround. >> if i'm not mistaken there hasn't been a new -- a new refinery either licensed or built in this country in maybe two decades, am i right on that? >> no major one. the reason is the environmental permitting burden. putting capital to work when you are told it's going to be stranded is not a compelling investment thesis. >> dan, let me turn to you one of the things that caught my ear there apart from the president's mentioning that nuclear power is going to be a part of the energy mix going forward which i thought was an interesting thing was this line that the price at the pump needs to reflect -- reflect the cost of the product that's a shot at

the oil companies that suggests that they are increasing their pump prices beyond the increase in crude explain to me what he's talking about and whether that allegation holds any water >> tyler, a lot to unpack in that speech. i don't think it's an accurate statement to say oil companies are pushing price beyond the inflation and the base oil price. we've seen supply and demand very tight diesel and gasoline competing for that refining barrel and the reality is president biden is absolutely correct the ukraine situation has tacked on a buck-plus for consumers we were tight already. demand was fine at $3.75 a gallon and it's not at $5 a

gallon and this is a global situation. we can turn on all of the idle capacity in the u.s., we would still have a tight market and high prices. so a gas tax is an action. it's not a solution, relieving the gas tax, but the reality here is we have to get more supply into the global system and we've got to recognize it as a global system. >> let me turn -- i'm really fascinated by the linkage between the oil that comes out of the ground and then it is refined and sold on a wholesale market and there's a linkage between these prices and it's pretty fixed it's not like somebody's -- and it's not like somebody's jacking on extra price to gouge in most cases. that's my opinion, but be that as it may. let me go back to you, kevin book, and that is this, if you reduce the tax on a gallon of gas. the federal tax and the state tax, are you, in effect, doing

the opposite of what you need to do which is to say that you're are -- you will then decrease -- increase, excuse me, the demand for gasoline while it does nothing to help you with supply, so the result would be that the basic crude cost would go up and not down >> when you get down to inducing or preserving the demand would get it more quickly. it does offer a demonstrable evidence or in this case, called on congress to do something. in terms of magnitude, if you go from 2021 through today, we are talking about personal income per capita eroded by price increases. the 90-day holiday over the gasoline tax is single basis points and a fraction of the percent offset for that. so if we want to see defense

block the price, anything you can do, it doesn't balance the market at all, really, it seems to me. gentlemen, thank you very much fascinating topic and the dynamics of the oil market and tough to get my head around, but you've helped me mr. book, mr. pickering, thank you. >> thank you >> you got it, guys. being pulled front and center, big oil under the microscope tonight at 8:00 p.m. david faber's look at exxonmobil and he had access to workers and facilities watch the full documentary and nothing could be more timely than "exxonmobil at the crossroads" tonight at 8 c:00 eastern. >> the dow was up a moment ago interestingly enough, after chair powell's tough talk on inflation telling lawmakers that it's essential that the bank brings it down our next guest says he expects better trends and is investing

for the long term. joining us now is mike bailey of fbb capital partners welcome to you i don't know if you are especially bullish on energy, but anything you've heard today that would change your mind on where you want to be in this market >> it's some interesting comments from the president and the prior guest. i think it does feedback into three of the themes when looking at it and frankly, ways to overcome the fears driving the bear market. inflation is definitely the number one theme and energy is fr front and center and the earnings to your point, at this point, nothing that we've heard makes sort of major change in our opinion. we could see a little bit of change on the margin frankly, just the president coming out there and saying we're doing our best and trying to impact oil prices and gas prices maybe there's a little bit of impact on consumer sentiment hard to ay, but i think i woul go with your last guest and

really pervasive market forces and gas prices and supply and that's the biggest kicker that we need that we do want to see a lower price at the pump. >> if we don't get that, one of the picks is the consumer-facing name, church and dwight. are you confident they continue to hold up >> one of the things we look for, is a quality consumer business, the barriers to entry. one thing that we've seen is the consumer trading down. other retailers are seeing it. so when you look at product companies you want to find a business where it would be tough tore break down. something like a church and dwight only 12% of their categories have a private label competitor. that's something within the consumer can get tricky and people can switch to the store brands rapidly and that can hit you on margins and something like a church and dwight business and i think that's something you can recover even

as input prices rise up. a couple of other names, adobe, american tower and these are more b-to-b facing would you say that the path of interest rates matters hugely to you from here? >> for those particular stocks, i think more for american tower. is it a telecom company? technically it is a reit so if interest rates keep moving up in the short term it does hit the real estate investment trust and that is something that we're thinking about, however, we do look longer term and typically these big tower companies is an oligopoly and in fact, they have these escalators and that can insulate them and the base business is doing just fine. you have mobile data and 5g that's helping demand. from rising interest rates, we're not too concerned there and the other is adobe with organic growth going on, and

they don't need a lot of deals and it's not really a concern for them and it's frankly the economy. are people still out buying and shopping and sellers need to create fancy websites and need a lot of creative software if the answer is yes, you'll stick with adobe. >> and the dollar factor as well >> thanks for joining me today to react we appreciate it >> thank you >> mark bailey with thoughts on the market lauren thomas, the retail holding franchise group is lowering its bid for kohl's from about $50 to $60 the original bid values kohl's at $8 million. the two companies entered a three-week window to finalize financing arrangement. that ends this weekend so perhaps we're seeing some movement the shares are down 9% for kohl's, tyler. >> that is a big move down let's get to contessa brewer now for a cnbc news update

contessa >> good afternoon, everybody the mayor of uvalde announces plans to demolish the school mayor don mclachlan said no child or teacher should be asked to return to robb elementary school we don't know when that demolition might happen. north dakota republican senator kevin cramer suffered a serious hand injury and may have to have a finger amputated he was hurt while working in his yard and didn't explain further and he will stay in north dakota for medical care. rupert murdoch and jerry hall are getting a divorce murdoch's divorce would be his fourth it is unlikely to alter the ownership structure of the businesses he holds stakes in which is the parent companies of fox news and "the wall street journal. murdoch and hall wed in 2016 at a centuries-old mansion in central london >> tyler, kelly? >> thank you very much, contessa >> ahead on woet power lunch."

two big warnings for mizuho. buy now, pay never and the firm seeing growing delinquencies. >> crypto fatigue. coinbase's volume surged during crypto sell-off, but don't move during rallies we'll speak to the analysts behind both of these calls, xtne

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impress your mom with super-sonic wifi. it's unbeatable internet for a more unbeatable gru. i mean, you. and in this version of the cnbc eye test, 90 minutes left in the trading day and we want to get you caught up on the markets, stocks, bond, commodity, everything! and the latest news from the buy now, pay later companies let's turn to kristina partsinevelos on stocks at the nasdaq kristina >> i love the energy the nasdaq in the green right now after we are seeing a decline in yields although the ten-year is still above the 3% mark you are seeing new oil prices and rates on jay powell. the biggest drops today coming from chinese technology like j.d.com, pin duoduo and baidu. they have their big retail

birthday event like every year on june 18th and this year it brought in the biggest sales growth in pfeiffer years and it's playing a role in consumer sentiment in china and marriott down 2.5, and overall, hotels are lagging on this concern about a slowdown in consumer spending it's down 18% in the past three months and you can see other hotels also trending downward. we can't talk about the nasdaq without bringing up semiconductors and we have qualcomm, and skyworks all struggling today and the sox, the semiconductor etf tracking for its worst calendar quarter since 2008. let's talk good, moderna, docusign and the biggest winners on the nasdaq. moderna's valiant vaccine appears to work against omicron sub variant and dan spring springer stepping down and the stock is up over 5% and lastly, several software and cyber names

that are top gainers so far like intuit, okta, autodesk all trading above 2% or more, but they're all still between 40% and 70% off their most recent highs, so unfortunately, they have a long way to go. tyler, back over to you. >> kristina, thank you very much let's go to rick santelli in chicago as the bond market reacts to chair powell rick >> you know, everyone i talk to whether it's by email or whether it's by texting or voice thought had his talk today in a q and a was quite hawkish. it was hard to disagree with that, but yet as you look at interest rates and equity markets it was hard to square. well, here's the reason because interest rates had a huge drop today and the drop really started before our time zone look at the 24 hour of our two-year and then look at the two-day of our two-year, we're down 14.5 basis points and the

two day of tens. yes, we are down ten basis points and considering we had a spike all of the way up at 350 drives home the point considering we're at 3.15, not 3.50 now and if you look at overseas, they hovered around 250 and they're down from their spike last week and yields are down around 1.63 that's down 30 basis points from their spike last week. so the recessionary issues out there may not be valid, may not be born out by yield curves, but it doesn't matter. they're born out by fingers that are hitting the buy button on the sovereign side pushing yields down and they're hitting the buy button on equities pushing prices up. tyler? >> you've got that thank you, rick santelli president biden speaking on gas prices within the past half hour and proposing now a federal gas tax holiday. it's got to go through congress

where its possibilities are iffy at best. let's see how oil is trading right now following those remarks and pipa stephens is at our commodities desk oil is well off the lows of the day which at some points saw wti down 7% and under 102. this comes as biden calls on congress to temporarily suspend the federal gas tax and that's not what is drivering today's decline. this is about recession fears hitting all asset classes and as jeff curry said today on "squawk box," there are also technical elements at play here, given the huge spread between oil and everything else. ultimately, what this means is that fundamentals are not driving this action. with that in mind, let's check on prices and wti down at 105.53 and biden saying he's doing everything possible to bring down gas prices, but there are

many people who say such a move is more like a band-aid and doesn't fix the strukctural issues in the market and it will meet higher prices for producers instead of savings for consumers. tyler, back to you >> thank you very much pippa stephens reporting a new report from mizuho shows the buy now, pay later delinquencies are accelerating and june will be a critical month for affirm which has seen its stock drop 80% so far this year joining us is the analyst behind that report mizuho's dan dolen to me it reminds me of a horse that has won a triple crown and this is not a triple crown stock, forgive me for being sarcastic, but you could have seen it coming with the stumbling recession and higher prices and you could see that the delinquencies earn going to

go up, right >> i forgive you for being sarcastic, as always i think we're talking about two separate things. we are talking about a cyclical trend and not really good trends that we're seeing with delinquencies and the 30-plus day delinquencies, and they're moving up and the 60 and 90 are stable and the other part which the call is predicated on, it's the secular long term disruption of credit by very sophisticated, buy now pay later firm so i want to separate the cyclical which we may or may not get into more trouble which everyone has a view and the long term secular share gain which is why we're search big believers in the firm. >> so this is a buy for you, this stock. >> 100%. you have a price target and right now it's $19 or thereabouts and you have a price target of 50 what takes it there? >> i don't know. i don't have a crystal ball and

i don't know how bad the recession, yes, no, soft, hard landing, i have no clue especially sophisticated farms a firms are targeting a new generation that does like to trade or does like to buy things using this capability. they don't like credit this is a replacement for credit this is actually taking share from the large banks which are issuing credit cards and that's the reason i think the stock would more than double because once we get out of this and i don't know how it's going to pan out, but once we get out of this, they are the go-to market leader in buy now, pay later in the u.s. and they could literally be the visa or mastercard of buy now, pay later and that's why i'm so confident. >> what distinguishes, forgive me for being ignorant on this or partly ignorant which i usually am, but these companies, what

distinguishes them from credit card companies is they do not charge interest on the open balance, correct you have a schedule. you pay x more dollars in three months and it's not interest they're making money off of? >> there are a lot of separate, you know, ways to do this. one is interest-free and interest bearing amazon is 0% commission to amazon, but they charge interest i think what distinguishes themes is pay as you go, right so it's a pay as you go whereas you're getting stuff on a product by product basis and the underwriting and the understanding of the consumer because credit cards are a cake, and there's a whole new generation which i am not part of which likes to transact with this, and i think what they're doing is they're catering to that generation and they're capturing the mindshare and that's so much more powerful than any particular cycle, and i

cannot stress it enough. they're a huge market leader and when they do it will double. >> if you're not part of that generation, by golly, i'm certainly not a part of that generation let's move on to kriptso where the phrase of the day is crypto fatigue. what do you mean there and how is that translating into stock prices for companies like coinbase and others. >> so i made a sharp u-turn from my bullish on affirm i could not be more bearish. for months since we initiated coverage that crypto transaction fees are going to zero, right? we didn't know the news was going to hit today, but this is actually materializing and you are seeing crypto fees eventually going down and this is 90% of coinbase and the note

we wrote today shows you that down days have much more volumes compared to the up days on bit coin, they're more dramatic than up days which means that people are not buying the dip and that's very important. that's the crypto fatigue that we're talking about. something has happened with the consumer. >> yeah. the fed. >> dan, there you so much. >> the crash very insightful and very enlightening and we'll have you back soon. dan dolan, thank you. >> speaking of which, as an economic recession coming with fears over a slowdown, could ad and subscriber-driven businesses also be at risk? plus pulling e-cigarettes off shelves. altria we hit it in today'shr-sck teeto lunch. we're back in a moment this thing, it's making me get an ice bath again.

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consumer facing companies, meta, snap and spotify all down by 50% since january. what's the outlook at the largest conference of the year julia boorstin is at can lion at the advertising festival she has a look for us. julia? >> despite a range of major economic headwinds as well as the sell-off, a very dramatic sell-off in the ad-driven stocks, the outlook here for the future of advertising is very much bullish as the digital platforms continue to gain share from traditional advertising twitter which announced a partnership with shopify here in cannes, they told us they're reassuring advertisers that they're committed to building businesses and brand safety owe the platform despite the noise around elon musk's pending purchase to the company. >> we've built a very robust ads business, one that for any buyer that were to take over this company would also want to maintain as a healthy part of a

multi-faceted diverse business and that is one of the things that we've shared with our customers and why we are so committed still to the commitments that we've made around brand safety. >> tiktok is here for the second time and its ad chief telling me they continue to see massive growth potential brands, chase consumers on to the platform despite the broader headwinds. another company with the fast-growing ad business is spotify and it's the leading audio platform with its massive presence, post malone will be appearing in just a couple of hours. i sat down with don ostruf she says her business is benefitting from that shift from traditional to digital formats. >> obviously, we are very cognizant of what's happening in the world and all of the talk about there being a lot of headwinds, but as of now we have not seen any of those headwinds

specifically through the advertising business that's not to say things won't change, as of now, it's still pretty consistent and been fairly positive. >> that positive outlook was echoed by nbc universal's ceo jeff shell i interviewed him on the main stage here and he talked about the strength they're seeing still in that ad spending. you can find more from my interviews here in cannes on cnbc.com kelly? >> all right i'll pick it up for you, julia thank you very much. wish i were there. up next, three big movers in today's three-stock lunch. we'll talk about altria. you know what's happening there with jewel we'll talk about kraft hieeinz d roku tonight on "mad money," jim cramer will talk to meta's mark zuckerberg and an interview like none you've ever seen before

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welcome back more news hout of washington following the president's call to suspend the federal gas tax, members of congress are commenting nancy pelosi saying quote, we will see where the consensus lies on a path forward republican senator john thune saying biden's holiday is dead on arrival >> you wonder how much of that verdict on it comes from the political side which is the president's, the gop wants to do nothing that would help the president's popularity rating heading into a midterm election. on the other hand, there are legitimate concerns about whether it's good policy or not. >> right and somewhat fortunately, we are seeing a little bit of a break in gasoline prices and oil prices lately, but as we've been talking about, those refinery margins are large and that's keeping the price elevated and those pressures -- >> and the refineries are working full out so where the

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positive comments. kraft heinz higher today let's bring in david trainer, the ceo of new constructs, and david, altria, what would you do with the stock >> we think it's a buy 10% plus free cash flow yield consistently over the years and the stock price is really beat down it implies the product would decline by 50% risk reward is good and when it comes to competitive advantage, no one or few companies in the history of the world have been better at branding, marketing and distributing their products. >> another stock, roku >> what's there? is it really that differentiated a product? and look, they've never made any money cash flow wise i don't know if they ever will especially if they couldn't during the pandemic and yet the

stock price implies that profits will increase by over 300% so sort of the opposite of altria never made money but the stock price is going to imply flow will expand. so we think risk reward is bad there. recommend selling. >> so one buy, one sell. what about kraft heinz >> i'm in the middle ground there. this has been a profitable business, but profit s are in decline. there's not a lot of growth or innovation we think recession and or inflationary risks are going to be a big headwind for this business valuation isn't very steep, but there's not a lot to like or a lot to hate here with kraft. >> is kraft heinz, is there a case to be made by investment bankers that you could bundle parts of kraft heinz and divest parts the way kellogg is going >> absolutely, but up to this

point, it's been an m&a nightmare. some of the biggest writedowns in the history of acquisitions so you know, they don't have a great track record in terms of capital allocation unwinding those bad acquisitions doesn't necessarily make bad acquisitions good. it puts less capital in the hands of certain folks who have not had a good track report. but it doesn't create value where there isn't any to begin with you know, even if you divide the pie into small piece, it doesn't change the size of the pie >> a parting thought on the market >> we think there's a lot more pain to come there are plenty of stocks that are still dramatically overvalued clearly we've not seen capitulation when certain stocks like whether it's coinbase or robinhood or peloton or tesla are still trading at valuations that imply extraordinary cash flow growth. we think things have come in a lot and that's a good sign, but there's a lot more culling of

the herd that needs to happen before this market hits a bottom >> thanks. maybe we can do a quick check on the energy complex on our way out? >> got any energy stocks >> wti around 107. >> $20 drop. >> it got close and we've seen it coming back >> shall we say good-bye >> good-byes are hard. >> they are hard thanks for watching. >> "closing bell" starts now >> thank you, kelly and tyler. stocks rebounding from a steep premarket loss as oil and the fed take center stage. the most important hour of trading starts now welcome to "closing bell." take a look at where we stand in the market a lot better than where we started. we got as low as 364, made a few attempts at going positive and now looks like that's sticking the s&p is up about .6% as kelly and tyler were mentioning, energy is under pressure as crude declines everything else is higher. real estate is the leading